This report summarizes the findings of
an extensive literature survey of the experiences of
implementing BEECs in developed countries. It also includes
case studies of four developing countries- China, Egypt,
India, and Mexico and the state of California in the United
States of America. It aims to inform both the World Bank
Group and its client countries about global best practices
and emerging lessons from developing countries in the design
and implementation of BEECs. The report also serves as a
primer on the basic features of BEECs and the commonly
adopted compliance and enforcement approaches. The key
challenges to improving compliance enforcement in developing
countries include the level of government commitment to
energy efficiency, the effectiveness of government oversight
of the construction sector, the compliance capacity of
domestic/local building supply chain, and the financing
constraints. These challenges are surmountable in countries
where economic growth is sustained and energy efficiency is
pursued as a key element of national energy strategy.

The practice of Demand-Side Management (DSM) has evolved over the past three decades in response to lessons learned from implementation in different global settings, and also in response to the changing needs of restructured power markets. The most notable change that is occurring today is the inclusion of programs that emphasize price responsiveness in the DSM portfolio. Traditionally, DSM programs were confined to energy efficiency and conservation programs with reliability-driven load management programs being used occasionally to manage emergency situations. Electric prices were taken as a given when designing such programs, hampering the eventual success of all such efforts. This Primer has been written to introduce the new concepts of price-responsive DSM that are currently being investigated in a variety of different market settings. It highlights different criteria and taxonomies for classification and evaluation of DSM programs and recommends programs that will likely provide a better fit with the objectives, expected needs and outcomes of DSM initiatives in developing and transition countries. As defined in this primer, such initiatives include both load shifting programs (that either clip peak loads or shift energy used in the peak period to off-peak periods) and efficiency programs (that reduce the total amount of energy). The purpose of the primer is to provide successful examples of price-responsive DSM programs from the developed world and by discussing their workings...

One of the strong messages that came out
of the recent United Nations Climate Change conference in
Durban was that the private sector has to play an important
role if we are to globally move toward a low carbon, climate
resilient -- or "climate compatible" -- future.
However, private investment will only flow at the scale and
pace necessary if it is supported by clear, credible, and
long-term policy frameworks that shift the risk-reward
balance in favor of less carbon-intensive investment. The
private sector also needs information on where to invest in
clean energy in emerging markets, and it needs policy
support to lower investment risk. Barriers to low carbon
investments often include unclear and inconsistent energy
policies, monopoly structures for existing producers,
stronger incentives for conventional energy than clean
energy, and a domestic financial sector not experienced in
new technologies. With the long-term goal of promoting and
accelerating the implementation of climate mitigation
technologies...

This study describes the Energy
Efficiency for Sustainable Development (EEfSD) action plan,
to scale up energy efficiency operations in client
countries. The EEfSD strategy comprises of interventions at
three levels: policy and regulatory, sector and sub-sector,
and at end-use equipment and appliances. It is structured
along four tracks: integrating energy efficiency within
economic and sector work; mainstreaming energy efficiency in
investment operations; improving internal operational,
learning and analytic capacity; and monitoring, evaluation,
and outreach. Priority focus is on countries with highest
energy intensities, where rapid growth of the energy sector
is expected and where total energy use is greatest.
Implementation of the action plan will be guided by the
Energy, Transport and Water Department, and will require
cooperation and collaboration across the Bank Group, in
particular the regional operations units. This paper
presents the estimated incremental costs for FY07-09 which
have been committed from energy trust funds and Bank budget.

Improving energy efficiency (EE) is one
of the most promising approaches for achieving
cost-effective global greenhouse gases (GHG) reductions.
However, it is severely underrepresented in the Clean
Development Mechanism (CDM) portfolio. Just 10 percent of
the emission reduction credits traded in the carbon market
is from EE projects. In particular, small, dispersed,
end-use EE measures-which entail significant GHG mitigation
potential, along with other clear, local, and direct
sustainable development benefits-have been largely bypassed
by the carbon market. The modalities of traditional CDM have
been set for individual, stand-alone, emission reduction
projects that are implemented at a single point in time.
While CDM rules allow "bundling" of several of
these projects together for registration purposes, the
specific sites where they will occur must be known ex-ante
and they must all occur at the same point in time. These
conditions generally cannot be met by most dispersed
demand-side EE programs, whose emission reductions occur
over a period of time and in numerous locations
(households/industries/cities). In addition...

Energy efficiency (EE) is critical to
help Turkey continue its trajectory of economic growth in a
sustainable manner. The Government of Turkey recognizes this
and has placed EE as a key component of its energy strategy
and National Climate Change Strategy and Action Plan. Over
the past 5-10 years, it has made considerable advances in
establishing a strong policy and legal framework, creating a
robust institutional set-up and developing programs to
support EE implementation. Institutionally, the General
Directorate of Electric Power Resources Survey and
Development Administration (EIE) had been mandated with EE
policy making, implementation and promotion since 1981, and
an Energy Efficiency Coordination Board (EECB) was
established under the 2007 EE Law to coordinate various EE
policies, programs and other efforts. In November 2011, EIE
was converted into the General Directorate for Renewable
Energy (GDRE) and absorbed within the Ministry of Energy and
Natural Resources (MENR). The World Bank conducted an EE
institutional review in consultation with the Turkish
Government with the objective to enhance their ability to
more effectively manage EE policies and programs and thus
contribute to helping meet its stated national EE targets.
The review consisted of a detailed assessment of the current
institutional set-up...

There has been a clear need for
energy-efficient (EE) technologies that can be applicable in
the municipal street lighting sector. The objective of this
manual is to support the preparation and implementation of
street lighting projects in India, using performance
contracting and other public private partnership-based
delivery approaches. This manual draws upon global best
practices, including practices that have been tried and
presented within India and South Asia; and draws from their
failures and successes to document the major lessons
learned. The manual provides a brief overall background of
EE in India, the kind of barriers faced in the
implementation of EE projects, and the kind of prevalent
policy environment for EE in the country. The manual is
divided into eight sections. Section one provides an
overview of EE street lighting, its components, Indian
standards for outdoor lighting, the key lamp technologies,
and the potential for intelligent street lighting systems.
Section two highlights the financial models for
implementation of street lighting projects. Section three
describes the essentials of undertaking a detailed energy
audit to develop robust baselines. Section four focuses on
procurement and contracting. Section five describes
methodologies for developing monitoring and verification (M
and V) protocols for EE Street lighting projects. Section
six brings together the useful tools and matrices in
implementation of street lighting projects. Section seven
lists the key stakeholders involved in India in such
projects and their potential role. Section eight provides
details on international and Indian case studies on
implementing EE in street lighting and key lessons from
these case examples.

The purpose of this study is to analyze the economic effects of federally mandated energy efficiency standards on the market for appliances. The analytical focal point of this thesis centers on representative studies and Congressional testimony supplemented by current articles and data. The benefits and costs of energy efficiency standard implementation are examined. Economic assumptions and key determinant factors that drive results such as discount rate selection, provide the basis for objective comparison. The findings of this study support the need for Federal intervention in the home appliance market to alleviate economic market failures

This study is designed to analyze the
energy efficiency policies in seven countries that were
successful in achieving low energy intensities or in
reducing their energy intensity considerably. The study
analyzes the evolution of the energy intensity of these
countries from 1990 to 2007, identifying points of
inflection in the progress towards improvements. Changes to
the policy agenda immediately upstream are explored in an
effort to identify cause and affect relationships in energy
efficiency improvements. Although direct relationships are
difficult to isolate, cross country analyses that point to
similar successes among a variety of countries give some
confidence that these policies have contributed to reducing
energy needs. The energy efficiency of new buildings is
relatively easily and in expensively addressed by setting
standards: making a new building energy efficient typically
adds only 5 percent to the total cost. The purpose of this
study is to determine what policy changes make a difference
in countries' energy in tensity. The starting point for
the analysis was the evolution of countries' energy
intensity over time to identify inflection points when
notable changes took place. Given that the inflection point
could have been caused by external price shocks or
structural changes...

This report demonstrates that a
"climate-smart" energy strategy is possible for
countries in the East Asia region, with support from the
international community. In the past three decades, the East
Asia region has experienced the fastest economic growth in
the world, accompanied by rapid urbanization. As a
consequence, energy consumption has more than tripled and is
expected to further double over the next two decades. This
remarkable growth and rapid urbanization have led to twin
energy challenges in the region: improving environmental
sustainability and enhancing energy security. The region has
many of the world's most polluted cities, resulting
from fossil fuel combustion. The region also contains some
of the largest greenhouse gas emitters in the world,
although their per capita and historical emissions are much
below the levels of industrialized countries. Concerns with
energy security have grown because of increased risks of
price volatility and possible disruptions in supplies for
oil and gas. To move the region to a sustainable energy
path...

The first volume of Independent
Evaluation Group (IEG) series (IEG 2009) examined World Bank
experience with the promotion of the most important win-win
(no regrets) energy policies, policies that combine domestic
gains with global greenhouse gas (GHG) reductions. These
included energy pricing reform and policies to promote
energy efficiency. This second phase covers the entire World
Bank Group (WBG), including the International Finance
Corporation (IFC) and the Multilateral Investment Guarantee
Agency (MIGA). It assesses of interventions, from technical
assistance to financing to regulatory reform. This
project-eye view of activities pertains to all the action
areas of the Strategic Framework on Development and Climate
Change (SFDCC). The third phase will look at the challenge
of adaptation to climate change. The WBG's resources,
human and financial, are small compared to the task at hand.
The International Energy Agency estimates that developing
and transition countries need $16 trillion of energy sector
investments over 2008-30 under 'business as usual'
operations...

Tajikistan's electricity system is
in a state of crisis. Approximately 70 percent of the Tajik
people suffer from extensive shortages of electricity during
the winter. These shortages, estimated at about 2,700 GWh,
about a quarter of winter electricity demand, impose
economic losses estimated at over United States (US) 200
million dollars per annum or 3 percent of Gross Domestic
Product (GDP). The electricity shortages have not been
addressed because investments have not been made in new
electricity supply capacity and maintenance of existing
assets has not improved. The financial incentive for
electricity consumers to reduce their consumption is
inadequate as electricity prices are among the lowest in the
world. Without prompt action to remedy the causes of
Tajikistan's electricity crisis and with growing
demand, the shortages could increase to about 4,500 GWh by
2016 (over a third of winter electricity demand) or worse.
The World Bank undertook this study to assist the Government
of Tajikistan (GoT) in finding ways to overcome the current
electricity shortages and establish a sound basis for
meeting the growing electricity demand in Tajikistan. The
study focuses on the investments and policy reforms needed
between now and 2020 to strengthen the financial...

Reliable power supply is critical for Tajikistan's economy and poverty reduction goals. Without reliable, affordable electricity throughout the year, Tajikistan's businesses cannot invest, operate and create jobs; hospitals and schools cannot function fully or safely with frequent power cuts during winter; citizens suffer indoor air pollution from burning wood for heating and cooking. Electricity also powers the country's two largest exports: aluminum and agricultural produce, which account for about 30 percent of Tajikistan's annual gross domestic product and almost 45 percent of export earnings. Currently, electricity is the cheapest available resource to heat homes so the residential and commercial sectors are highly dependent on electricity for heat as well as lighting and industrial processes. The Government is responsible for guiding programs that keep power supply apace with demand. The purpose of this study is to assist the Government in further defining ways to meet growing demand for electricity in Tajikistan, with a particular focus on the recurring winter shortages which amount to about 24 percent of winter demand. The study also examines the potential benefits of power exports, particularly during summers when hydropower plants spill energy. The study explores a range of alternatives to meet electricity demand as quickly as possible and develop a short term plan of action to alleviate the social and economic costs of winter shortages. The study focuses on multiple initiatives that can be started immediately and simultaneously...

Energy efficiency can improve fiscal balances, stimulate growth and competitiveness, strengthen energy security, and reduce the energy burden of the poor. It also can enhance the quality of life by improving energy products and services, reducing pollution, and reallocating savings from energy to social services and other welfare enhancements. From a long-term perspective, energy efficiency preserves energy resources for future generations and mitigates climate change. Most governments in the region consider energy efficiency as a priority issue, although for different reasons. The key issue for many is the weight of energy subsidies in fiscal balances; for others, it is the vulnerability of the economy to swings in hydrocarbon prices and the risk of losing competitiveness; and for still others, it is concern about generating enough financing for energy investments and satisfying the energy demand of their fast-growing economies. These factors have prompted governments to renew their efforts to improve energy efficiency. This report explores opportunities to boost energy efficiency in the Middle East and North Africa and secure a sustainable energy future for the region. It explores governments' growing concern about the burden of energy subsidies and identifies opportunities to improve efficiency...

This evaluation is the first of a series
that seeks lessons from the World Bank Group's
experience on how to carve out a sustainable growth path.
The World Bank Group has never had an explicit corporate
strategy on climate change against which evaluative
assessments could be made. However, a premise of this
evaluation series is that many of the climate-oriented
policies and investments under discussion have close
analogues in the past, and thus can be assessed, whether or
not they were explicitly oriented to climate change
mitigation. Two sets of win-win policies are perennial
topics of discussion in the energy sector: reduction in
subsidies and energy-efficiency policies, particularly those
relating to end- user efficiency. This report looks at
these, and at another apparently win-win topic: gas flaring.
Flaring is interesting because of its magnitude, the links
to pricing policy and to carbon finance, and the existence
of the World Bank-led initiative to reduce flaring.

This report assesses global experiences
with Energy Efficient Purchasing (EEP) as a tool to help
governments improve the efficiency of their facilities and
public services. In many developed countries, EEP is
increasingly becoming subsumed within broader Green Public
Procurement (GPP) or sustainable procurement policies, where
EE is only one indicator among many others. Global energy
needs are increasing at a steady pace. Rapid industrial
development and growing populations have led to an
exponential growth in worldwide energy consumption.
According to the international energy agency, demand for
energy is projected to grow steadily from 2010 to 2035,
representing a 40 percent increase. About 90 percent of this
increase will come from developing countries. As these
countries continue to urbanize, develop their industrial
infrastructure, and provide universal access to basic
services, strains on the existing energy infrastructure and
resources will intensify. This, coupled with a substantial
rise in the middle class in many of the emerging economies...

Within the Western Balkans region, a
secure energy supply is critical to sustaining economic
growth. Currently, the region relies heavily on imported
hydrocarbons and maintains high energy intensity relative to
Gross Domestic Product, or GDP. This places a huge burden on
companies, which require affordable and reliable
infrastructure services to be competitive; the public
sector, which spends significant budgetary resources on
energy; and households, which have to pay a high portion of
their income for energy services. As energy pricing is
further rationalized, a higher burden will be placed on all
sectors, especially poorer households. The residential
sector is a significant energy consumer. Its share of total
final energy consumption ranges from 28 percent to 32
percent (compared with the EU average of 27 percent). Fairly
simple renovations such as insulation, heating system
upgrades, and improvements to windows and lighting could
reduce consumption in this sector by some 9 percent, with
payback periods generally less than 8 years. Such
improvements could help ease the impact of future tariff
increases while helping reduce the region's projected
energy supply and demand gap.

Buildings consume approximately 40% of the total energy use in the world. A building is a complex system whose annual energy use consists of many factors. The top five end-uses of building energy are space heating, space cooling, water heating, lighting and electrical appliances. Over fifty countries have developed efficiency standards and energy labels for residential appliances and commercial equipment to reduce energy consumption of those end-users. However, studies rarely consider the appliance efficiency in a whole building system. For this project, I used a computer-based simulation program to evaluate the impact of appliance efficiency in buildings on the heating, ventilation and air conditioning systems (HVAC). I studied the Chinese energy efficiency standards for refrigerators, washing machines, televisions, computers and rice cookers, and evaluated their impacts on two residential building prototypes being designed in an eco-city being planned and under construction in China. I found that improved efficiency of refrigerators and washing machines decreased peak load and the energy use for space cooling, but increased the energy use for space heating. The improved efficiency cut overall energy consumption and could lead to total annual energy savings of $1.2 million in Tianjin eco-city. Although several limitations exist in this project...

As a part of larger efforts to address climate change and curb greenhouse gas emissions, Australia first put categorical energy efficiency labels on residential appliances in the mid-1980s. The first Minimum Energy Performance Standards (MEPS) for refrigerators were later implemented in 1999 and updated in 2005 to align with U.S. levels in 2001, considered to be the world’s strictest domestic appliance standards at the time. Considered together, these actions set Australia apart as having one of the most aggressive appliance efficiency programs in the world. For these reasons, Australia is a potentially fruitful case study for understanding the dynamics of energy efficiency standards and labeling program impacts on appliance markets. Fortunately, in the Australian case, market data allows for empirical determination of these questions. This paper analyzes Australian refrigerator efficiency data covering the years 1993-2009. Sales data was obtained from GfK Group and includes data in each year for each product class and each efficiency rating category. Statistical regression analysis is used to model market introduction and adoption of high-efficiency refrigerators according to the logistic adoption model formalism, and parameterizes the way in which the Australian program accelerated the adoption of high-efficiency products and phased out others. The results indicate that the introduction of MEPS accelerated the penetration of high-efficiency appliances onto the market. The MEPS revision in 2005...